Introduction

Abstract

This book is the fourth in a series of discussions about the great minds in the history and theory of finance. While the series addresses the contributions of significant individuals to our understanding of financial decisions and markets, this entry in the series describes a paradigm that was almost universally accepted by finance scholars upon its inception in the mid-1960s and questioned by financial practitioners ever since. We will describe the controversial efficient market paradigm and attempts by the finance discipline to make our financial models more realistic.